SHINY PROVISION STORE

SHINY PROVISION STORERETAILLING CHALLENGES IN INDIAN CONTEXTSubmitted By :-Angad Bir SinghA1802013203MBA-IBSem-IV

Flow of PresentationObjectiveHistory of Retail IndiaShopping Orientation in Evolving Indian MarketReliance Fresh and Shiny Provision StoresModern Retails Impact on Kirana StoresDemographic SegmentationCustomer AnalysisImage AnalysisRecommendation

ObjectiveTo highlight the importance of analyzing the retail strategy of Kirana Stores.Recommending strategies to strengthen the position in the Retail Industry and compete with modern retail outlets.

History of RetailTraced past to Indus Valley CivilizationBarter SystemFairs : Periodically Conducted market placesShandies : Weekly MarketsVillage Shopkeepers: Merchants going out of village for tradePublic Distribution Shops : Govt. run chains

Growth of retailingAt the time of independence the focus was more on basic amenities rather than luxuryIn 1950, there were 0.25 Million retail outletsIn 1978, 2.335 Million retail outlets or 3.7 shops per 1000 persons.In 1997, 5.13 shops per 1000 persons.In 2005, 10.51 shops per 1000 persons.Indian retailing industry was dominated by kirana stores.

Retail Market of IndiaLargely unorganizedFood consumptions is close to Rs. 9000 BillionRs. 3300 Billion urban food consumptionIndian households spend 48% highest in world on food

Kirana StoresMom and Pop of the westOwner and family members manning the storeSmall floor footageUnorganized retail formatTrades in branded as well as unbranded productsLow Priced SKUsLargest source of self employment in IndiaNext door convenience store

Shiny Provision StoresKirana Store located in BTM layoutStore area was 600-1000 Sq. ft.11 of the 38 Kirana store in vicinityTrades in SKUs, vegetable, fruits and groceries

Modern Retail OutletsReliance Fresh located in BTM, BangaloreStore area 3000-3500 Sq. ft..Deals in branded productsAttractive

Modern Retail Outlets

SHOPPING ORIENTATION IN THE EVOLVING INDIAN MARKET

INTRODUCTIONStudies on shoppers limited to their time and spending pattern, demographic profile and preferences for a particular format.Study attempts to understand shoppers from their disposition towards shopping.Shoppers seek emotional value more than functional value. Shopping is considered to be a task.Some similarities and some differences in the orientation of Indian shoppers and shoppers from developed countries.

INTRODUCTION (contd.)Some distinct aspects of Indian shoppers:Post purchase information management and bargaining.Definition of convenience which is proximity to home, work place as well as the places that the shoppers frequent.Shoppers are clustered into two segments:Fun shoppersWork shoppers

PRIOR RESEARCH REVIEW

PRIOR RESEARCH REVIEWA transition in the environment to which shoppers are exposed for some past years.New formats are being tried for improved customer value such as Subhiksha.Shoppers attach more importance to ambience and facilities at store (Sinha, Banerjee and Uniyal, 2002).

METHODOLOGYStudy conducted among 300 respondents.Structured questionnaire got filled from shoppers outside the store they had visited on that day.Stores dealt with grocery, apparels, household appliances, books and music, shoes, lifestyle products like cards and gift items, cosmetics and medicines. Study focused on both old and new format stores.

METHODOLOGYQuestionnaire generated constituted four constructs:Pre-shopping information searchProcessing of information while shoppingPost-purchase information managementGratification derived out of shopping.Each construct was tested for reliability. Results suggested to retain all the final statements.Composite scale consisting of all constructs used having Cronbach Alpha value of 0.74.

Factor analysis yields 13 factors on factor analysis of 286 responses. K-mean cluster analysis used to predict profile of shoppers based on their orientation.CART analysis to find out major variables that discriminated the clusters, generated out of cluster analysis. Classification is based on age, SEC, frequency of visits, gender, marital status, types of stores they visited and product class they purchased.

METHODOLOGY

ORIENTATION TOWARDS SHOPPING

Shoppers can be divided into two segments:Fun shoppersWork shoppers

Data is supported by K-mean cluster analysis

ORIENTATION BASED SHOPPER TYPOLOGY: WORK VS. FUN

Shiny vs. RelianceBoth were located in main area of BTM 2 KM apartBoth carried similar categories of productsShiny provided door delivery serviceVicinity for both was same

1. Impact of modern retailing on kirana customersReliance store outscored Shiny on Aesthetic ImageAtmosphereAttractive layoutAdvertisingWell placed productSpacingMore variety of products attracts more customer at RelianceBetter service causes surge in the number of customerHigh earning customers preferred Reliance over KiranaLack of branded product at kirana causes customer to switch to RelianceChanging shopping pattern i.e. working class preferring bulk shopping on weekends at the Reliance where they find other refreshing activities and offers

2. Demographic SegmentationHigh Income group preferred spend more at Reliance FreshReliance was preferred for Branded Items Reliance scored better on Activities, Interests, Opinions study

Differently perceived dimensions of the modern outletLow IncomeAttractive layoutGood Display all overAttractive and informative displayPrice of the productReturn of purchasesHelpful sales, clerical staff

Differently perceived dimensions of the modern outletMedium/High IncomeQualityCheckout delayDressing of store staffStore atmosphereProduct placingOne stop facilityExclusive product assortmentsBrands

3. Expenditure PatternOne third population belong to